The case features Sara Razmpa, head of responsible investment, and Fiona Frick, CEO of Unigestion, at a critical juncture in the Geneva-based asset management firm’s ESG journey: the decision to launch an equities fund that specifically tackles climate change. While Unigestion had launched product families that integrated ESG in the past, this would be a new and more challenging undertaking. The case opens with the two debating between whether to launch a Climate Transition Fund or the more ambitious Paris-aligned Fund. Both methods aligned with the Paris Agreement by placing the portfolio on a 1.5ºC trajectory, with no or limited overshoot, and heading towards net-zero by 2050. However, they differed in their starting points and stringency. Students are placed in the shoes of Razmpa and Frick and need to decide which portfolio to launch – while balancing climate impact, commercial considerations and fund performance. The selection of climate funds is not straightforward. The decision touches on key debate points in sustainable finance: a financial investor’s fiduciary duty, whether to exclude or engage with high emitters and what would be most effective in tackling climate change. Finally, the case includes a practical application exercise where students can construct their own climate-focused portfolio. This is a timely case. There is a growing spotlight on climate change, especially with COP 26 in late 2021. Despite country pledges for net-zero emissions, a UN study found that current fossil fuel production plans set forth by governments worldwide for 2030 is double the level required to limit global warming to 1.5ºC. The financial sector, as a key allocator of capital, has a key role to play. This case can help students better understand the role financial institutions can play in the transformation towards a 1.5ºC world, the nuances of building climate positive portfolios and how to critically analyze different climate strategies and their implications.
Chanel Global CFO and IMD Executive in Residence Philippe Blondiaux explains how finance leaders can sustain a long-term focus on sustainability while addressing short-term challenges.
As AI continues to reshape industries, businesses must navigate the balance between automation and human contribution. How can AI can drive sustainability while empowering both employers and employees through data collaboration, energy optimizatio...
More than simply a compliance exercise, sustainability reporting regulations offer a chance to develop and strengthen your business, says IMD’s Salvatore Cantale
More than simply a compliance exercise, sustainability reporting regulations offer a chance to develop and strengthen your business, says IMD’s Salvatore Cantale
Leaders, strategists, and decision-makers can play a pivotal role in integrating sustainability into business strategies – and make money in the process. Knut Haanaes, Bryony Jansen van Tuyll, and Øystein D. Fjeldstad outline five steps to make it...
AI can enhance sustainability reporting and help you deepen green efforts – but it also has an environmental impact of its own. Julia Binder and José Parra Moyano identify the four ‘hows’ of harnessing AI for enhanced sustainability reporting and ...
Artificial intelligence (AI) is widely recognized as a driver of productivity, while sustainability, despite its benefits to the environment, is often seen as a cost burden. When combined, however, we believe they form a powerful synergy that can ...
No single leader or business function can drive progress toward net zero. Knut Haanaes identifies six ways in which CHROs can help drive organizational change.
Warnings about alcohol’s harms by medical experts are nothing new. But the drinks industry is now taking sobriety seriously by investing in a growing range of alternative products.
CEO Manuel Reman blends Krug's tradition with innovation, fostering deeper connections with global audiences and emphasizing authenticity to keep the champagne house relevant amid shifting tastes and sustainability challenges.
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Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications